There’s only one way to say it, and it is that relationships are crucial to your business, and everything, from your income to your reputation to your ability to do business, hinges on the relationships you have built with the people you do business with. The better the relationships you have, the better the deals, and the better the business you create for yourself and others.
Let’s look at a typical example of a relationship: you and your doctor. You go to your doctor because you either need medical advice on issues you are experiencing or for a regular checkup. You, or your insurance company or another insurer, are paying your doctor for his services and his expertise and experience. Your doctor is accepting your money and providing his services to you. This is a financial relationship first. You go to see your doctor and he gets paid for seeing you.
Now, you also have a personal relationship between you and your doctor. You know your doctor’s medical skills and experience (or should) and you rely on this to provide you with medical services that detect and treat your health issues. Your doctor knows your medical history and certain aspects of your working and personal life that allow him to provide you with quality medical care. Each of you has access to the resources of the other so that the relationship is effective for both parties.
You also have an obligation of truth and openness in the relationship. You are obligated to tell your doctor the truth about your medical issues. You are not to hold anything back as anything you do not tell your doctor can ultimately affect your health. Your doctor is also obligated to provide you with all the information he has on your health, good or bad, whether you want to hear it or not. This relationship ensures there are no miscommunications or misunderstandings about what each of you is saying to the other.
Next, you have a confidentiality relationship. You must be quiet on things you overhear in the waiting room or office, or anything personal your doctor may disclose to you (such as you needing an appendectomy and your doctor telling you he’s had one also.) Your doctor is required to practice doctor/patient privilege and not disclose anything about you or your health issues other than to other medical personal as to provide you with continued medical service or as provided by law. This relationship ensures crucial information stays where it is and is does not get into the hands of others who may use it for different purposes.
Any example would actually work here, from customer/retailer to homeowner/contractor. The idea is that we can’t go it alone. We need to have relationships with other people that are effective in getting things done, getting the results, and getting the compensation for everyone involved in those relationships. Effective relationships are the result of a win-win situation for all parties involved.
There are many aspects of relationships that must be taken into consideration. For instance, everyone must be nice and polite to each other. It does nobody any good, and could destroy a relationship and the business advantages of that relationship, if one of the parties becomes insolent and insulting to one or more of the others. Raising your voice, banging the table, swearing, or using insulting language is extremely detrimental to any type of relationship, especially those in the real estate business.
Never talk down to anyone. An effective relationship is built on everyone being peers and at the same level. No one is above anyone else and everyone deserves the respect of everyone else. You must treat everyone, even those who may be directly under you, as equals who get a say in what goes on in the relationship. Treating everyone in your circle of clients, partners, and resources as equals makes an effective relationship strong. Talk to them as equals all the time.
You also have to learn how to listen to others and actually hear what they have to say. You can’t just sit back and let your partners talk. You have to actively listen to what they are saying and what thoughts and ideas they are trying to get across. You might be surprised how much you can learn from everyone.
If you disagree with anyone in your partnership, don’t just go off and yell and storm out of the room and let the relationship sour. If you disagree, do it properly. Give your reasons as to why you disagree and support your reasons with concrete facts. Everyone in the relationship needs to understand that everyone agrees to disagree. Sometimes disagreements can be constructive in bringing up issues that have not been considered before. Don’t just disagree simply to be, well, difficult. Disagree to explain situations and issues and get problems solved.
Everyone in the relationship must be honest and up front. Anyone who holds back information or isn’t truthful risks more than the relationship itself. It may also risk deals and profits. Never hold anything back and always be truthful with everything you say and do.
Think like they do when presenting information and offers. You should talk to them in their language. For instance, if you are discussing potential renovations with a contractor, use terms and phrases they would normally use. The same goes for other partners. Think like an investor, and when talking to investors, you need to talk like an investor. Use this skill in your negotiations as well. Thinking like those who you are trying to get to see your point of view or get them interested in properties or deals makes it easier to do those deals.
As you can see, relationships are extremely important in everything you do, and are vitally important in your real estate business. Seek out and cultivate these relationships to build your business and make your money.
Now, in building your relationships you need to make your buyers, sellers and money lists, which are going to be your relationships and your resources you will use to build your business. Your lists must be extremely detailed as possible to make them effective. You need names, phone numbers, addresses, email addresses, website addresses, description or preferences of the properties they are seeking, selling, or willing to fund (new, rehabs, foreclosures, recurrent vacancies, estate liquidations, etc.).
You can begin your lists manually in a book or with an Excel worksheet, whatever is easier for you, but for the best way to manage your lists you are really going to need a program such as Customer Relations Management software to sort and search your lists. Some programs are free and some can even be used to match sellers with buyers which will save you time and energy. Search for CRM software online and you might just find one that will work for you.